Tex.
Prop. Code Section 221.034
Exempt Offerings and Dispositions; Communications
(a)
An offering or disposition is exempt from this chapter if it is:(1)
a gratuitous offering or disposition of a timeshare interest;(2)
a disposition pursuant to a court order;(3)
a disposition by a governmental agency;(4)
a disposition by foreclosure or deed in lieu of foreclosure;(5)
an offering or disposition by an association of its own timeshare interest acquired through foreclosure, deed in lieu of foreclosure, or gratuitous transfer;(6)
an offering or disposition of all timeshare interests in a timeshare plan to not more than five persons;(7)
an offering or disposition of a timeshare interest in a timeshare property situated wholly outside this state under a contract executed wholly outside this state, if there has been no offering to the purchaser within this state;(8)
an offering or disposition of a timeshare interest to a purchaser who is not a resident of this state under a contract executed wholly outside this state, if there has been no offering to the purchaser within this state;(9)
the offering or redisposition of a timeshare interest by a purchaser who acquired the interest for the purchaser’s personal use; or(10)
the offering or disposition of a rental of an accommodation for a period of three years or less.(b)
If a developer has a timeshare plan registered under this chapter and is subject to Section 221.024 (Powers of Commission), the developer may offer or dispose of an interest in a timeshare plan that is not registered under this chapter to a person who is the owner of a timeshare interest in a timeshare plan created by the developer. A developer under this subsection is exempt from Sections 221.021 (Registration Required), 221.022 (Application for Registration), 221.023 (Amendment of Registration), 221.032 (Timeshare Disclosure Statement), 221.041 (Purchaser’s Right to Cancel), 221.042 (Notice; Refund), 221.043 (Contract Requirements), 221.061 (Escrow or Trust Account Required), 221.071 (Deceptive Trade Practices)(a)(1) and (8), 221.074 (Annual Timeshare Fee and Expense Statement), and 221.075 (Civil Penalty for Late Statement; Injunction) if the developer:(1)
permits the purchaser to cancel the purchase contract before the sixth day after the date the contract is signed; and(2)
provides the purchaser all timeshare disclosure documents required by law to be provided in the jurisdiction in which the timeshare property is located.(c)
The following communications are not advertisements under this chapter:(1)
any stockholder communication, including an annual report or interim financial report, proxy material, registration statement, securities prospectus, timeshare disclosure statement, or other material required to be delivered to a prospective purchaser by a state or federal governmental entity;(2)
any oral or written statement disseminated by a developer to broadcast or print media, excluding:(A)
paid advertising or promotional material relating to plans for acquiring or developing timeshare property; and(B)
the rebroadcast or other dissemination of any oral statements by a developer to a prospective purchaser or the distribution or other dissemination of written statements, including newspaper or magazine articles or press releases, by a developer to prospective purchasers;(3)
the offering of a timeshare interest in a national publication or by electronic media that is not directed to or targeted at any individual located in this state;(4)
any audio, written, or visual publication or material relating to the availability of any accommodations for transient rental if:(A)
a sales presentation is not a term or condition of the availability of the accommodations; and(B)
the failure of the transient renter to take a tour of the timeshare property or attend a sales presentation does not result in a reduction in the level of services or an increase in the rental price that would otherwise be available to the renter; or(5)
any follow-up communication with a person relating to a promotion if the person previously received an advertisement relating to the promotion that complied with Section 221.031 (Advertisements and Promotions).(d)
The following communications are exempt from this chapter if they are delivered to a person who has previously executed a contract for the purchase of or is an owner of a timeshare interest in a timeshare plan:(1)
any communication addressed to and relating to the account of the person; or(2)
any audio, written, or visual publication or material relating to an exchange company or program if the person is a member of that exchange company or program.
Source:
Section 221.034 — Exempt Offerings and Dispositions; Communications, https://statutes.capitol.texas.gov/Docs/PR/htm/PR.221.htm#221.034 (accessed Apr. 29, 2024).
